Saving Behavior Within and Across Developing Nations: Implications for Public Policy Makers

Abstract

Although the idea that people should save some portion of their incomes is undisputed, much extant consumer and public policy research on this topic concentrates on citizens in the developed world. Whether saving behavior is similar or different in developing countries has yet to be adequately explored. To address this research gap, the authors investigate how the proclivity to save money may influence consumption adequacy and life satisfaction across these nations and, even more fundamentally, how the ability to earn income may ultimately influence the ability to save. They compare these relationships across BRICS countries with the United States as a surrogate for developed nations. Using the University of Michigan’s World Values Survey, the authors investigate Wave 6 to determine what may underlie differences across countries. The results demonstrate that motivations and their relationships with saving behavior and consumption adequacy vary significantly. Each then plays a role in how satisfied individuals are with their lives. Findings highlight how to develop public policies to enhance saving behavior, along with research directions consonant with the study objectives.